AstraZeneca gets FDA approval for Imfinzi, BP pumps out strong first quarter

London open

The FTSE 100 is expected to open 18 points higher on Tuesday, after closing down 0.46% at 7,203.94 on Friday.

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AstraZeneca and its global biologics research and development arm, MedImmune, said the US Food and Drug Administration (FDA) has granted accelerated approval to the bladder cancer treatment Imfinzi (durvalumab). Imfinzi is indicated for the treatment of patients with locally advanced or metastatic urothelial carcinoma who have disease progression during or following platinum-containing chemotherapy, or whose disease has progressed within 12 months of receiving platinum-containing chemotherapy before or after surgery.

BP got off to a strong first quarter, with a £1.45bn profit and expectations of a "material improvement" in cash flow from the second half of the year. The oil colossus kept its quarterly dividend unchanged at 10 cents a share as $2.1bn of cash flowed from the production of 3.5m barrels of oil and gas per day, up 5% than same period in 2016.

Global medical technology company ConvaTec Group announced the US launch of the Flexi-Seal PROTECT Fecal Management System on Tuesday, following receipt of 510(k) clearance from the US Food and Drug Administration. The FTSE 100 firm said Flexi-Seal PROTECT FMS was the latest addition to the company's “market-leading range” of advanced systems developed to manage acute fecal incontinence, and help to reduce the associated risks of skin breakdown and spread of C. difficile infection. It said the new product was designed to provide protection for both patients and clinicians in a “number of innovative ways”.

Newspaper round-up

The chances of the US Federal Reserve raising interest rates this week were put at less than 5 per cent yesterday after a key measure of inflation fell for the first time in more than 15 years. The core personal consumption expenditures price index fell by 0.1 per cent in March compared with the previous month. The annualised rate of 1.6 per cent fell short of the Fed’s 2 per cent target. - The Times

The EU has been plotting for weeks to thwart Theresa May’s plans to secure a deal for British expats in Europe and migrants in the UK. Jean-Claude Juncker, the European Commission president, is reported to have been “astonished” by Mrs May’s demand that an agreement be reached by the end of next month. - Daily Telegraph

Theresa May faced criticism last night for her handling of Brexit talks after a damaging account of her recent dinner with the president of the European Commission was leaked. She was accused of “megaphone diplomacy” and a complacent approach over her allegedly fractious exchanges with Jean-Claude Juncker. - The Times

Britain’s £40 billion car finance market could be heading towards a mis-selling scandal because of concerns about the reliance on debt to buy vehicles. Nearly 90 per cent of new cars are sold using personal contract plans (PCP) finance deals, most of which mean the owner in effect leases a vehicle for three or four years rather than buys it outright. - The Times

Greece has reached a preliminary deal with its creditors that should pave the way for long-awaited debt relief talks, the Greek finance minister said on Tuesday. “The negotiations are concluded,” Euclid Tsakalotos told reporters, according to state agency ANA. - Guardian

US close

Wall Street ended on a mixed note, with a weak reading on first quarter economic growth offset by better-than-expected results from Alphabet and Amazon.com.

The Dow Jones Industrials slipped 0.19% to 20,940.51, as the S&P 500 gave back 0.19% to 2,384.20 and the Nasdaq 100 added 0.22% to 5,583.53.

The American economy expanded at an annualised clip of 0.7% over the first three months of 2017, down from the 2.1% clip seen in the preceding three months and the 1.2% advance economists had been expecting.

A slowdown in household spending to just 0.3% was the main driver of the weakness in GDP, even as investment in business structures jumped by 22.1%, their biggest rise since early 2014.

"That weakness, in our view, is likely to prove transitory. Warm weather reduced utilities consumption, motor vehicle purchases declined to a more sustainable rate, and early in the quarter, tax refunds were delayed," said economists at Barclays Research.